PR-10-216 -- PSC Issues Rules On Renewable Energy Standards

Contact: Kevin Kelly (573) 751-9300

FOR IMMEDIATE RELEASE -- June 3, 2010

Rules Designed To Carry Out Proposition C

JEFFERSON CITY---The Missouri Public Service Commission has adopted rules that set the structure, operation and procedures for increasing the amount of electricity generated from renewable sources of energy, further diversifying the energy portfolio of Missouri’s four regulated electric companies.  These rules carry out Proposition C, approved by Missouri voters in November 2008.

 “These rules take significant steps toward reducing our reliance on out-state-fuels for the production of electricity,” said PSC Chairman Robert M. Clayton III.  “Missouri voters made it clear that they expect Missouri utilities to acquire clean and locally produced energy for their customers.  These rules will support the creation of Missouri jobs and Missouri electricity.” 

The rules apply to the four investor-owned electric utilities regulated by the PSC (AmerenUE, Kansas City Power & Light, KCPL-Greater Missouri Operations Company and The Empire District Electric Company) which serve more than 1.9 million customers in Missouri.  The rules do not apply to electric cooperatives and municipal electric systems.

The rules provide the procedure by which utilities meet statutory obligations for renewable energy.  Missouri law requires that by 2011, electric companies must either generate or purchase at least 2 percent of the electricity they sell from renewable sources.  That percentage increases to approximately 15 percent by 2021.  The electric companies are required to meet those required percentages by either generating the electricity through the use of renewable energy sources or by purchasing renewable energy credits.  Under the rules, at least 2 percent of the renewable energy must be from solar.

Rate adjustments to implement the renewable energy standards rules would be limited to an average of 1 percent a year.  In addition, the Commission determined that if a utility company needs to purchase renewable energy credits to meet rule requirements, the renewable energy associated with those credits must be sold to Missouri customers.

“The 2 percent solar requirement along with the Commission’s net metering rules adopted last year provides additional incentives for customers to consider adding solar panels to their homes,” said Clayton.  The renewable energy standards rules establish a solar rebate program for retail customers. 

Renewable energy includes electricity produced by wind, solar, biomass, landfill gas, small-scale hydropower projects and hydrogen fuel cells.

The rules adopted by the Commission establish penalty provisions for utility companies that fail to meet the requirements.  The PSC staff will monitor actual implementation of the renewable energy plans.

The Commission’s vote was 3-2.  The renewable energy standards rules are scheduled to take effect this fall.

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